A first-time homebuyer slightly overstates their income on a loan application because they are afraid they will not qualify for the mortgage they need. This behavior is best classified as which type of mortgage fraud?

Correct answer: Fraud for housing

Fraud for housing occurs when a borrower misrepresents information on a loan application to obtain a home they would not otherwise qualify for. The borrower's primary motivation is to acquire housing, not financial gain. Fraud for profit, by contrast, typically involves industry insiders (MLOs, appraisers, attorneys) who manipulate transactions to extract money from lenders or homeowners. Appraisal fraud involves misrepresenting property value, and occupancy fraud involves misrepresenting intended use of a property.